Review of 2026 NEW Water Budget

NEW Water Update Allouez Village Board October 7, 2025 Today’s Agenda • Facility Plan & Capital Project Updates • 2026 Draft Budget Facility Plan Comprehensive look at liquids process needs at NEW Water’s Green Bay Facility (GBF) and De Pere Facility (DPF) Main conclusions in 2021: • Need to invest $310 million - $480 million over the next 20 years in treatment plant and interceptor system* • Projected to increase revenues approximately 5.5% - 7% each year for 10 years to fund critical capital needs, operations, and maintenance *Capital costs presented in 2021 dollars. Facility Plan & Capital Project Updates Construction Underway Capital Estimate GBF North Plant Clarifier Rehabilitation $39.1M GBF Thickening Improvements $26.5M DPF Pumping & Headworks $24.3M East River Interceptor Rehabilitation $13.5M Downtown Interceptors Renewal $18.1M Design Underway Capital Estimate GBF Pumping & Headworks $57M - $97M East River Lift Station & Force Main $12M - $14M Ongoing uncertainty related to inflation, consultant and contractor availability, and supply chain impacts. Downtown Interceptor / East River Interceptor Renewal Projects • Project Summary – Rehabilitation of large interceptors located primarily in downtown Green Bay. Most of the pipe was originally constructed in the 1930s. • Project Update • Construction in full swing for the $29 million Downtown Interceptor / East River Interceptor Renewal Projects. • Work is expected to be substantially completed in July 2026. • Allouez Impacts - Contractor intends to start work in the Allouez area over the fall and winter months to minimize disruption to the East Lawn Park. National Challenge Source: NACWA (National Association of Clean Water Agencies) 2024 Cost of Clean Water Index. 2026 DRAFT Proposed Expenses Budget Category 2025 Budget 2026 Budget % Change Operations & Maintenance (O&M) 28,811,808$ 29,786,743$ 3.4% Debt Service and Annual Capital 24,777,184$ 29,272,891$ 18.1% Total Expenses 53,588,992$ 59,059,634$ 10.2% O&M, 50%Capital & Debt Service, 50% 2026 DRAFT Revenue Budget Categories 2025 Budget 2026 Budget % Change Municipal User Fees 45,970,269$ 49,022,339$ 6.6% Mill User Fees and Direct Charges 2,963,050$ 3,051,323$ 3.0% Mill Capital Charges 2,112,463$ 2,406,886$ 13.9% Other Revenues 1,324,346$ 1,358,017$ 2.5% ICR and Debt Reserve Transfers 1,218,864$ 1,221,069$ 0.2% Contribution (TO)/FROM Capital Reserve -$ 2,000,000$ 0.0% Total Revenues 53,588,992$ 59,059,634$ 10.2% Municipal User Fees are 83% of Total Revenues 2026 DRAFT Budget Summary 2026 DRAFT Budget compared to 2025 Budget Percentage TOTAL Expenses increased 10.2% * Capital Expenses increased 18.1% O&M Expenses increased 3.4% Municipal User Fees increased 6.6% Note: A portion of the Interceptor Debt Service was offset through the use of ICR Reserves *$2M use of Plant Capital Replacement Reserves to stabilize rates between 5.5%-7% Reserve Use History Year Approx Amount 2023 $2.0M 2024 $1.5M 2025 $1.6M 2026 * $3.0M * Draft NEW Water has utilized Reserve Funds to offset costs over the past several years and is forecasting to continue to strategically utilize reserves Municipality Specific Impacts • Factors that impact a municipality’s share of the costs • Revisions to Cost Allocation Methodology (no changes this year) • Municipality’s flow and load changes • NEW Water and municipal staff work together to refine the budgeted flow and loads • Based on historical trends and known future conditions • Other municipal or industrial flow and load changes • Fluctuations in flow and loadings can swing cost share to others • Especially true with highly variable industrial contributions Strategic Financial Planning Strategic Financial Planning Budgeted Municipal User Fee Increases & Projected Range NEW Water Cost for a Typical Household For the DRAFT 2026 budget, a typical household will pay about $28 per month for NEW Water services* This is an increase of about $1.71 per month over the 2025 budget. *NEW Water provides continuous service throughout the year as a wholesale provider, servicing 15 municipal customers. Rates are the same for each municipal customer and NEW Water does not bill residents directly. Each municipality calculates their bills according to wastewater services they require of their residents, businesses, and industries. Bills from municipalities will also include other costs such as the municipalities’ cost to operate and maintain their neighborhood sewer system, which then connects to the NEW Water system. Stay tuned to NEW Water news Sign up for our E-newsletter, follow us on social media, get in touch www.newwater.us Image result for facebook square logo Image result for instagram square logo Image result for linkedin square logo Image result for twitter square logo Image result for youtube square logo Thank you for partnering to protect our most valuable resource, water